SK hynix-owned Solidigm is plotting a new $45 billion flash memory factory for the US, report claims

Solidigm, an American subsidiary of SK hynix, is reportedly discussing a new U.S. factory for NAND flash memory. The proposed plant would support domestic chip manufacturing and could eventually become part of a much larger American investment. The plan matters because Solidigm is linking U.S. construction to permission for work in China.

The company wants the Commerce Department to approve exports of manufacturing equipment to its Dalian factory. Solidigm says the equipment would upgrade that plant, which produces NAND flash memory. According to unnamed sources, the improved Chinese operation could help finance the proposed U.S. counterpart.

No decision has been reported. The Commerce Department may reject the request because U.S. rules restrict certain technology exports to China. Solidigm has allegedly mentioned construction in New York for 2027, while its wider U.S. manufacturing investment could eventually reach $100 billion.

Solidigm’s immediate proposal is a $45 billion investment in a new U.S. flash memory factory. That figure would fund a major domestic manufacturing project for NAND chips. It reflects the company’s attempt to expand production in the United States while responding to growing demand for memory used in data centers.

The reported path to a larger total involves additional American manufacturing investment. Solidigm has allegedly told the Commerce Department that its U.S. commitment could eventually reach $100 billion. The article also says construction in New York is penciled in for 2027, although it does not describe the full construction schedule or the additional facilities.

The figures remain part of a proposal, not a confirmed investment program. The Commerce Department’s response is unclear, and Solidigm did not mention the planned U.S. investment during its latest earnings call. The company did warn that memory shortages could last through 2030.

Solidigm needs permission because the equipment used to upgrade a semiconductor factory falls under U.S. technology export controls. The U.S. government treats exports to China cautiously, with national security regularly cited as a reason. Those controls can cover manufacturing tools, not just finished chips.

The requested equipment would go to Solidigm’s Dalian plant, which produces NAND flash memory. Solidigm says the machinery would improve the Chinese factory’s output and help it contribute to financing a new U.S. plant. Without approval, the company cannot legally make the proposed shipment.

The outcome is uncertain. The article says it is unclear how officials received the proposal or whether the Commerce Department will agree. Similar restrictions affect high-end AI data-center components, and the article describes a black market for some sanctioned sales. That wider enforcement environment makes permission far from guaranteed.

NAND flash memory is a type of electronic memory that stores data without needing continuous power. It is widely used because manufacturers can put substantial storage into compact chips. The article identifies it as the product made at Solidigm’s Dalian factory and links it to both ordinary devices and large computing systems.

A simple example is a device that needs stored files, software, or other data after it is switched off. Larger systems can use many NAND chips together for high-capacity storage. The same basic memory technology can therefore appear in relatively simple products and in full-blown data centers, although the systems and performance requirements differ.

The article presents NAND as a strategically important and volatile market. Samsung and SK hynix are upgrading Chinese factories to make more chips for AI data centers. Producers have reduced consumer-focused output, while shortages and rising prices have affected the broader memory market.

Solidigm’s proposed arrangement connects two factories. The company wants to upgrade its Dalian NAND plant, then use the improved operation to help finance a new U.S. flash memory facility. This matters because the Chinese plant could become a source of funds for the much larger American expansion.

The mechanism described is indirect. Solidigm would first need permission to export manufacturing equipment to Dalian. The upgraded factory could then produce more memory or more valuable data-center-grade components, potentially increasing the funds available to the company. Those funds could be transferred toward construction of the U.S. counterpart.

The plan is not confirmed. The Commerce Department has not publicly indicated whether it supports the proposal, and the company did not mention it during its latest earnings call. The possibility also comes as NAND prices and production choices are changing, with manufacturers favoring lucrative data-center components over consumer memory.

Samsung and SK hynix are directing more production toward memory used in AI data centers because demand is growing and those components are described as more lucrative. This shift reflects a commercial incentive as well as the rapid expansion of data-center requirements. Chinese factory upgrades are part of their effort to meet that demand.

The trade-off is less production for ordinary consumers. Manufacturers have already slashed consumer-focused memory output in favor of data-center-grade components. When fewer consumer chips are available while demand continues, supplies become tighter. The article links that imbalance to rising memory prices around the world.

The effects extend beyond shoppers and device makers. The broader NAND market has become volatile, and SK hynix cited that volatility among the reasons it canceled a planned Solidigm IPO. Solidigm also warned that memory shortages could continue through 2030, suggesting pressure may persist.

Governments treat semiconductor factories and chip-making equipment as national-security matters because chips support computers, data centers, and other important systems. Control over production can affect a country’s access to critical technology. The article says the U.S. government is therefore keen to encourage chip manufacturing at home.

The same concern explains restrictions on exporting advanced technology to China. Allowing equipment shipments can strengthen a foreign factory’s production capability, while blocking them can limit that capability. In Solidigm’s case, the proposed Dalian upgrade sits directly between those priorities: more American manufacturing and tighter controls on technology exports.

This creates a difficult policy trade-off. Solidigm is offering a possible $45 billion U.S. investment, with a potential long-term total of $100 billion, while requesting an export exception. The article says officials have not revealed their view. Similar controls have also affected high-end AI data-center components.